Canasil $1,000,000 Non-Brokered Private Placement Oversubscribed, Increased to $1,250,000

Suite 1760 – 750 West Pender Street

Vancouver, BC V6C 2T8

Canada

Tel: 604-708 3788

Fax: 604-708 3728

Email: [email protected]

NEWS RELEASE TSX-V: CLZ

July 21, 2020 www.canasil.com

Canasil $1,000,000 Non-Brokered Private Placement Oversubscribed,

Increased to $1,250,000

Vancouver, July 21 2020 - Canasil Resources Inc. (TSX-V: CLZ , DB Frankfurt: 3CC , “Canasil” or the

“Company”) announces that the non-brokered private placement (the “Placement”) of up to 5,000,000

units (the Units”) at a price of $0. 20 per Unit for total gross proceeds of up to $1,000,000 to fund drill

programs on the Company’s silver-gold projects in Mexico is oversubscribed. The Placement is increased

to 6,250,000 units at $0.20 for gross proceeds of $1,250,000. All other terms are unchanged. A finder’s

fee may be paid with respect to all or part of this Placement. The terms of the Placement are subject to

acceptance by the TSX Venture Exchange. The proceeds of the Placement will be used to fund expanded

drill programs on the Company’s silver-gold exploration projects in Mexico.

Each Unit will consist of one common share of the Company and one half of one non-transferable share

purchase warrant . Each whole warrant (a “Warrant”) will be exercisable to purchase one additional

common share of the Company at a price of $0. 25 during the first year, increasing to $0.30 in year two

following the closing of the offering . If, commencing after the fourth month after closing, the closing

price of the Company’s shares exceeds $ 0.50 per share for a period of 20 consecutive trading days (the

“Acceleration Trigger Date”) , the Company will have the right to accelerate the expiry date of the

Warrants to 30 days after the Acceleration Trigger Date by the issuance of a news release announcing

such acceleration within three trading days of the Acceleration Trigger Date.

About Canasil:

Canasil is a Canadian mineral exploration company with a strong portfolio of 100% owned silver -gold-

copper-lead-zinc exploration projects in Durango and Zacatecas States, Mexico , and in British Columbia,

Canada. The Company’s directors and management include industry professionals with a track record of

identifying and advancing successful mineral exploration projects through to discovery and further

development. The Company is actively engaged in the exploration of its mineral properties, and

maintains an operating subsidiary in Durango, Mexico, with full time geological and support staff for its

operations in Mexico.

For further information please contact:

Bahman Yamini

President and C.E.O.

Canasil Resources Inc.

Tel: (604) 709-0109

Email: [email protected]

www.canasil.com

Canasil Resources Inc.

News Release, July 21, 2020 page 2/2

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX

Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

This news release does not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of

any of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful, including any of

the securities in the United States of America. The securities have not been and will not be registered under the

United States Secu rities Act of 1933 (the “1933 Act”) or any state securities laws and may not be offered or sold

within the United States or to , or for account or benefit of, U.S. Persons (as defined in Regulation S under the 1933

Act) unless registered under the 1933 Act and applicable state securities laws, or an exemption from such

registration requirements is available.